The board of Alitalia approved a new industrial plan and said it was seeking a loan of up to USD$485 million from a major US bank to help it overcome a surge in fuel costs.
The Italian flag carrier had to revise its 2005-2008 industrial plan to take into account a 40 percent jump in fuel costs which has jeopardized its bid to launch a desperately-needed capital increase before the end of the year.
Banks are watching to make sure that Alitalia Chief Executive Giancarlo Cimoli makes good on promises to stem loses at the state-controlled company in order to attract investors to the cash call worth up to EUR1.2 billion (USD$1.45 billion).
As part of the new plan, Alitalia said it was bringing forward various restructuring moves, notably re-negotiating procurement contracts and reducing labor costs.
Alitalia and trade unions said on Thursday they had reached a deal to allow the struggling airline to save EUR65 million (USD$78.5 million) per year from 2006 by boosting productivity, improving management and "optimizing working models".
